Alternative Finance For Waterways Infrastructure

To evaluate Public Private Partnership (P3) authorization under the Water Resources Reform and Development Act
of 2014 (WRRDA). P3 is not a new concept. The private sector historically had an important role in highway
construction operation and financing in the early development of the U.S. In the mid-part of the 1800s, private
sector financing and operations declined. In the late 1980’s, P3 remerged for highways (i.e., toll roads, bridges and
tunnels). Today, many of our nation's critical infrastructure projects for transportation are evaluating innovative
financing. Of all the P3 transportation projects started in 2005, the U.S. has reached financial closure for 15
projects since 2009 at a total value of $21B. In Canada, 13 projects have reached financial closure since 2009 at a
total value of $10B in Canadian dollars. Since 1989, there have been over 100 P3 projects with a total value of
$54B.
Due to the passage of WRRDA of 2014, the Water Infrastructure P3 Pilot Program authorized a 5-year pilot
program to identify up to 15 previously authorized navigation, flood damage reduction, and hurricane/storm damage
reduction projects for private participation. This enables an innovative agreement with the private sector for projects
from planning, design to construction. A non-federal entity or a consortium of one or more private entities or a
public authority could participate in the funding, operations, maintenance, and replacement or major rehabilitation of
locks and dams under a real property instrument and cooperative agreement while still owned by the Federal
government.